An inside look at the CAD, CAM and CAE industry - by Roopinder Tara

May 06, 2013

CAD Leaders Face China Threat, Pt 2: Does GstarCAD Have a Chance?

In the wake of the GstarCAD8 launch last month in Beijing, to which 3 of us
western journalists were invited, I reflect on the chances of success of a
Chinese CAD company in the US and world market.

Registration for the GstarCAD8 launch in Beijing.

GstarCAD8 was
launched with sufficient fanfare. There were pretty girls, bright lights, a big
stage. As more CAD companies are choosing to soft launch major releases from
behind WebEx screens, this did make us sit up and take notice. One might read a
lot into their willingness to fly 3 western industry journalists half way across
the world to see the unveiling. We listed through translator headphones to
company executives extolled the product’s technical prowess ( a full list of the
quite impressive features is here) as well as a deliberate, long term campaign
that over the years sought to establish Gstarsoft first as a regional CAD
product, then as an international tool of choice.

GstarCAD has been a major player in China but now plans an international expansion.

Can they do it? We are only
too well aware to what China has done to us with manufacturing. Can they do it
with software? Guess what? Your software is probably already made in China – and
India. I cannot think of a major CAD vendor that does not have a development
team in China or India –or use Chinese or Indian labor on its home soil. A CAE
vendor once told me that almost all of its developers were2 distinct groups, one
from China, one from India. That was 20 years ago. The world has only got
flatter since.

The Gstarsoft executive team launches GstarCAD8 in Beijing

Still, to see one Chinese company extol their CAD product is not
enough to convinced that it will rule the CAD world. GstarCAD has only about 400
people. It is funded privately, not by the vast, concerted might of the country
itself. Autodesk, and other CAD companies, can exhale.

There are signs, however, of a national directive for China to establish
itself as a major player among software vendors. At the GstarCAD8 launch, Ky Xiang president of GstarCAD, tells us "China will be the software center of the world."

Clearly, China is no longer content to
be bridesmaid. Pennies for factory, sweatshop and cubicle farm labor while it sees US stockholders pocket the big bucks--that has to hurt. God help our current CAD market leaders should China ever get its
act together. Even our current heavyweight Autodesk would be knocked clear out
of the ring if that happens.